Ford positive about Toyota tech alliance

Ford President Alan Mulally expressed a positive view about strengthening its alliance with Toyota in the field of hybrid cars.

Ford positive about Toyota tech alliance

25 February 2007Seana K. Magee & Kazunori Masuda

Ford Motor President and Chief Executive Officer Alan Mulally expressed a positive view about strengthening its alliance with Japan's Toyota Motor Corp. in the field of environment-friendly hybrid vehicles.

During a telephone interview with Kyodo News, Mulally agreed to the view that bolstering an alliance in the area of environmental-friendly technology like fuel cells would be beneficial for Ford Motor and Toyota.

"I anticipate that the automobile manufacturers will increase their collaboration and their partnership on developing the enabling technology for even more fuel-efficient vehicles going forward,'' he said.

"It is a kind of natural thing for all of us to do, to accelerate the development of the enabling technologies."

The two automakers signed a licensing agreement in 2004 allowing Ford to use Toyota's hybrid system control technology patents for its hybrid system.

Developing such technologies requires huge costs, and is widely viewed as essential for future development of motor vehicle manufacturers.

The current tie-up between Toyota and General Motors Corp. excludes fuel cell technology.

Toyota Chairman Fujio Cho held talks with Mulally in December in Tokyo, a move that was seen by some industry analysts as spelling a fresh move toward a global reconfiguration of the auto industry.

During the interview, Mulally said he has no specific plans to meet Cho at present. He added, however, "I look forward to regular exchanges with the Toyota leadership team."

On its relations with its Japanese partner Mazda Motor Corp., Mulally emphasised Ford has no plans whatsoever to sell its shareholding in Mazda in order to secure funds for pressing ahead with its wide-ranging restructuring plan.

Ford booked a record $US12.75 billion ($A16.1 billion) net loss in 2006, moving into the red for the first time in five years.

"We treasure our relationship with Mazda," Mulally said.

"It is mutually beneficial and we have all of the financing that we need to create our new and improved Ford Motor Company."

Last month, Mazda said Ford will become its biggest shareholder in February by acquiring all Mazda shares held by its wholly owned subsidiary Ford Automotive International Holdings SL.

Asked whether there is any possibility of creating an alliance with the unprofitable Chrysler Group of DaimlerChrysler AG, he said, "I don't think so."

"We think that the best thing for us to do right now is to continue our plan to design our new Ford Motor Company with new products, a family of products that the customers really want and value and a more productive production system.

"That is our focus. We are not into any negotiations with any other manufacturer," Mulally added.